Gold hovers near 8-week high on hopes of Fed rate-hike pause

economictimes.indiatimes.com:

Gold prices inched up on Thursday, hovering near an eight-week peak on bets that the U.S. Federal Reserve might soon hit pause on its interest rate-hiking cycle. * Spot gold rose 0.1% to $1,978.59 per ounce by 0053 GMT.

U.S. gold futures were little changed at $1,981.30. * The dollar index wobbled near a more than one-year low, making gold cheaper for holders of other currencies.

* The Fed is expected to raise rates by 25 basis points (bps) in their meeting next week, keeping them in the 5.25%-5.5% range until cuts are seen 2024 onwards, per CME's Fedwatch tool. * Lower interest rates decrease the opportunity cost of holding non-yielding bullion. * The European Central Bank is also expected to raise rates by 25 bps next week.

* Investors will keep an eye out for initial jobless claims data in the U.S. later in the day for the week of July 15, forecast to rise to 242,000 from a seasonally adjusted 237,000. * SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose nearly 0.2% to 913.80 tonnes on Wednesday from 912.07 tonnes on Tuesday, rising for the first time in nearly three weeks.